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Multi-level Marketing

When making representations relating to compensation or earnings under a multi-level marketing plan, section 55 of the Competition Act requires they include the amount of compensation actually or likely to be received by a typical participant of the plan.

As well, operators of, and participants in, a multi-level marketing plan should ensure that any representations made about the plan are — or include information that is — fair, reasonable and timely as the plan relates to:

• the different levels of earnings or compensation received by participants in the plan;
• the amount of money earned by a typical participant; and
• the time and effort required to reach specific levels of income.